It's All Going To Be Okay Bitcoin - Just Gotta Hold Support

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Bitcoin bulls have one job to do right now, HOLD THE LINE! We are at a crucial support zone and if the bulls can hold on with all their might, we may just be able to turn things around!

Looking Longer Term

This my friends is the current Bitcoin daily chart. What I have going on here is a showing you a Fibonacci retracement that is pulled from the last swing low to the last swing high. This gives you a good idea of some support and resistance levels that the asset can come back to. The .5-.618 is what is considered the ‘golden pocket’. This means that the asset is very likely to come back to these levels.

As you see in this daily chart, that the current daily candle has hit support at the .618 level and a bit of absorption has started. This also corresponds directly with the daily time period point of control which is the area where there is the most volume. This means that there has been ALLOT of activity at these levels. This is looking like a prime spot for a bounce.

Zooming In A Bit

On the 2 hour chart, you can see that Bitcoin has found a soft landing around that .618 Fib level just as I had hoped. Here you can get a better picture at the volume profile for this time period too to see that we hit a bit of a shelf. We could absolutely slide down one more level, but when you add in the market cipher indicator, it tells a different story.

The momentum has been in a downslide for the past few days and the momentum wave, which is essentially the MACD, has hit 3 lower lows. In my experience, this is about the time things start taking a turn in the other direction. The RSI has hit and swept through oversold territory for a couple of days and is popping it’s head above the surface with some upside momentum!

HOLD THE LINE, BITCOIN!

This kind of action shows me that we may be looking to head in the other direction, at least for the near term. Accompanied with the longer outlook on the daily time frame, I feel we are going to consolidate and range in this area for a bit longer before we see any significant moves to the up or downside. At this point, the Bitcoin bulls need to hold this zone of support!

There isn’t really ever an exact price target, but price zones. I have talked about this before, but you need to be looking at a value range as your areas of support and resistance. Right now this is looking like a super sexy zone to be watching for some upward moves!

Happy trading everyone, and until next time…

Be Cool, Be Real, and Always Abide!